Pricing Power: The Secret Weapon of Profitable Businesses

What Is Pricing Power? The ability to charge what you're worth—without losing customers. Without it, you're running a charity, not a business. The 1% Rule: A 1% price increase = 11% profit boost (if volume stays constant). Strategy 1: Value-Based Pricing Stop pricing based on time or competitors. Price based on the financial impact of the problem you solve. Strategy 2: The Confidence Test If you're not losing 10–20% of clients on price, you're undercharging. Apple is a masterclass in this. Strategy 3: Anchoring and Bundling Lead with your premium offer. Use high-medium-low pricing tiers to make your middle option shine. Action Steps This Week: Calculate the value you deliver. Raise your prices 10% (for new customers). Use price anchors in your offer structure. Quote of the Episode: “If you’re not occasionally losing customers to price, you’re undercharging. Period.” 🔗 For more leadership insights and tools to grow your business, visit: https://www.deliberatedirections.com